The Efficiency of Public Procurement Centralization: Empirical Evidence from Serbian Local Self-Governments

Abstract

Different approaches in creating mechanisms for efficient public procurements have been applied worldwide over the last decade. Among these, bundling of public procurement is seen as a potential efficiency boost in the practice in highly decentralized procurement environments. Nevertheless, the domain of public procurement efficiency is still at its infancy in academic terms. This study examines the effects of centralization of public procurement at the local self-government level in Serbia. In particular, the study explores various upsides and downsides of centralization. Reflective recommendations provide a sound base for public procurement policy holders at the level of local self-governments.